Tax Facts - Gifting

Something is received in return, but its value is less than the value of the property given.

If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values.

In the context of trusts, these items can all be gifts:

Transfers of any items (for example, company shares or land).

Any form of payment.

Creation of a trust.

A forgiveness or reduction of debt.

Allowing a debt to remain outstanding so that it can't be collected by normal legal action.

If you propose to make a gift to a trust, please contact us to discuss the implications. It is important to take into consideration what the trust, and the gifts to the trust are designed to achieve as part of a long-term strategy.

The government abolished gift duty for dispositions of property made on or after 1 October 2011.

For gift duty on any gifts made before 1 October 2011, the IRD's guide on the IRD
website
is helpful.

Please be aware that there is a $6,000 annual gifting limit for rest home subsidy purposes.